Lease Beat

Datagram Adds Office at Intergate.Manhattan

375 Pearl Street.

Internet hosting provider Datagram has added a 5,200-square-foot “mission-critical” office space at Intergate.Manhattan at 375 Pearl Street, landlord Sabey Data Centers announced today.

Datagram, an existing data center tenant in at the facility, is the first office tenant at Intergate.Manhattan. The tenant signed the lease in January and is expected to occupy the new space beginning in July. Read More


475 PAS $40M Rehab Nears Completion

Rendering of 475 Park Avenue South

Cohen Brothers is finishing up a $40 million multi-year renovation at 475 Park Avenue South that will transform the exterior of the building with seamless high-tech expansive windows and a white frit pattern, Commercial Observer has learned.

“Nobody’s spending that kind of money” for a commercial building, said Marc Horowitz, director of office leasing at Cohen Brothers. “This will be the nicest [commercial] building, hands down, on Park Avenue South, that exists.” Read More

Sales Beat

Tribeca Mixed-Use Building Sells for $8.5M

90 Chambers Street. (PropertyShark)

Claude Castro LLC has acquired 90 Chambers Street in Tribeca from 90 Chambers Street Realty LLC for $8.5 million, Commercial Observer has learned. The building traded for $1.25 million less than its initial asking price in a 1031 exchange.

The property is located between Broadway and Church Street and includes five free market residential units and a ground-level retail unit. One of the building’s four-bedroom apartments last rented for $7,795 last year, according to StreetEasy. The building’s retail unit, which was occupied by Jerry’s Cafe until last September, is currently vacant. Read More

Sales Beat

Old 21st Precinct Station House in Gramercy Area Sells

327 East 22nd Street.

The former 21st Precinct station house, which served as a Gramercy Park-area group residence for 25 lesbian, gay, bisexual, transgender and queer young people, has sold for $11.5 million to Suzuki Capital.

Green Chimneys, a Brewster, NY-based nonprofit organization that provides residential, educational, clinical and recreational services to young people, paid $1.7 million for the property, at 327 East 22nd Street, in 1998, although it had leased space there since 1983, according to Green Chimneys’ executive director, Joseph Whalen. When a contract with the city’s Administration for Children’s Services expired last year, Green Chimneys moved its residents out and decided to sell the building, which was dubbed Gramercy Residence at Ungar House. Read More

Lease Beat

Three New Retail Deals at Brookfield Place

An interior rendering of the retail space slated for Brookfield Place.

J. Crew, Paul Smith and Posman Books have all signed leases at Brookfield Place, leaving the retail portion of the renovated property about 85 percent leased, The Wall Street Journal reported.

Posman Books will open its fourth location in a 2,000-square-foot space at the development. The bookseller also operates shops in Grand Central Terminal, Chelsea Market and Rockefeller Center. J. Crew is expected to open a 6,859-square-foot store, while English designer Paul Smith’s location will be approximately 2,555 square feet. Read More

On the Market

Former Borders Store on East 57th Street Nearly Ready for Occupancy

Rendering of 461-465 Park Avenue.

The retail condominium vacated by Borders bookstore at 461-465 Park Avenue is almost ready for occupancy by retail and medical office tenants, Commercial Observer has learned.

Cohen Brothers Realty is putting the finishing touches on what was a 42,600-square-foot Borders at the base of the Ritz Tower on 57th Street in Midtown,according to Marc Horowitz, director of office leasing at Cohen Brothers. Read More

Sales Beat

Delshah Offloads 163 West 80th Street to Chinese Investors for $7.65M

163 West 80th Street (Delshah Capital)

Michael Shah’s Delshah Capital has sold 163 West 80th Street to Yu Far Realty, a group of Chinese investors, for $7.65 million, the company announced today.

The seller acquired the five-story property in 2008 and converted the building’s existing ten residential units to five full-floor residences. A 1,400-square-foot penthouse unit in the building was listed for rent in February for $7,500 per month, according to StreetEasy. Read More

Mortgage Observer

PRC Lands $52M Construction Loan for Student Housing Project

A rendering of the planned development at The College of New Jersey

New Jersey-based developer The PRC Group nabbed $52.5 million in construction financing for its $80 million student housing project at The College of New Jersey, Mortgage Observer has learned.

HFF secured the three-year loan for the 130-unit development, which should be complete by fall of 2015. The trio of lenders was led by M&T Bank, an M&T spokesperson confirmed, and funds from The Provident Bank and Columbia Bank were bundled into the deal, according to Greg Lentine, director of university campus development for PRC.  Read More

Sales Beat

San Francisco-based Prana Investments Sells Bronx Apartment Building for $10.5M

1530 Sheridan Avenue.

A longtime Bronx landlord has paid San Francisco-based Prana Investments $10.5 million for a six-story building with 84 apartments in the Claremont section of the Bronx, Commercial Observer has learned.

The 96,000-square-foot elevator property “offers investors upside and scale,” Besen & AssociatesAmit Doshi, who represented both sides in the deal at 1530 Sheridan Avenue, said in a prepared statement. Read More

Lease Beat

Veracen Partners Among Pack of New Leases at 250 West 55th Street

250 West 55th Street. (Credit: New York Yimby)

Veracen Partners is among a set of several new tenants to take space at Boston Properties250 West 55th Street, signing a 10-year, 11,263-square-foot lease for a portion of the 16th floor at the 38-story tower.

CBRE, which represented the landlord, announced the lease concurrently with a 7,196-square-foot deal with RTW Investments & LifeSci Capital and a 4,806-square-foot Coltrane Asset Management lease. All three firms will occupy the 16th floor of the building, which features new high-end prebuilts designed by Gensler, with 10-foot ceilings and perimeter offices. Read More

Legal Disputes

Durst Organization Sued by U.S. Attorney’s Office Over Inaccessible Buildings

The Helena, which the federal government claims is inaccessible.

The U.S. Attorney’s Office has filed suit against The Durst Organization, the second major New York developer to come within the cross hairs of the federal government in a dispute over what does and should constitute accessible housing. The federal government alleges that Durst “has engaged in a pattern and practice of developing rental apartment buildings that are inaccessible to persons with disabilities.” Also named in the suit are The Helena Associates and FXFOWLE Architects, who designed the Helena, a 595-unit rental building in Hell’s Kitchen that is at the center of the lawsuit. Read More

Mortgage Observer

Natixis and UC Funds Lend $27M to Convert Historic Baltimore Office To Apartments

Equitable Building in Baltimore

Long Island-based JK Equities closed $27 million in construction funds from Natixis Global Asset Management and Boston-based UC Funds, to redevelop a historic downtown Baltimore building, Mortgage Observer has learned. The three-year, 4.91 percent loan closed earlier this week.

The Equitable Building, at 10 North Calvert Street in Baltimore, dates to 1891 and was acquired by JK last November for $7.2 million, according to published reports. The loan proceeds helped fund the acquisition and will also help with the $32 million bill to renovate the property, currently an office building, into 188 market rate residential units.The redevelopment will also include 25,000 square feet of retail, said Jerry Karlik, the president of JK Equities. Read More